18 - Oil and Gas Sector Local Content Decision Processes: Canadian Indigenous Participation

Summary

Focus in this chapter is on petroleum industry local content requirements for affected Canadian Indigenous peoples. Though Canada is a developed country, these indigenous nations are in a position analogous to developing countries affected by oil and gas development. Canada’s constitution, as judicially interpreted, recognizes and affirms indigenous peoples’ “aboriginal and treaty rights” that include the right to consultation and accommodation concerning proposed oil and gas development likely to affect them adversely. This duty to consult is typically discharged and implemented by means of impact benefit agreements (IBAs) between developers and indigenous nations, and enforceable conditions on government approvals of projects, including oil sands facilities and interjurisdictional pipelines, issued following public processes. The conclusion is that timing changes in government consultation would improve the effectiveness these IBA tools.